The Chancellor has cleared the way for individuals and couples to buy woodlands in a tax efficient way.
Changes to the inheritance tax relief on commercially managed woodlands have made it easier for couples to shelter their assets from inheritance tax (IHT). Specifically, the £1m IHT allowance per person is now transferable between spouses.
Chancellor Reeves has reinforced and extended the allowances for individuals and couples seeking to benefit from HMRC’s favourable tax treatment of woodland ownership. These allowances ensure the future of Family Forestry, enabling the transfer of woodlands between generations.
This endorsement of forestry investment emphasises the role that they can play in estate planning, combined with stewardship and enjoyment of UK woodland.
Government changes to the UK tax framework over the course of the last year have led to an increasing public awareness and interest in owning woodland in...